News Bureau

FDI Policy on e-commerce!

Representations alleging violations of extant laws by e-commerce companies have been received. In this regard, representations received are being examined by Department for Promotion of Industry and Internal Trade (DPIIT) and certain alleged contraventions under the FDI Policy, are also being investigated against certain e-commerce retail companies under provisions of Foreign Exchange Management Act, 1999 by the Directorate of Enforcement.

Further, several complaints against e-commerce entities, including related associate/holding companies etc, which are operating as marketplace platforms, online sellers/service providers, search engines service providers operating in different verticals etc, regarding anti-competitive behavior, are being looked into by Competition Commission of India.

In order to provide clarity to the extant FDI Policy on e-commerce, DPIIT had issued Press Note 2 of 2018 on 26.12.2018. However, no specific instructions have been provided by DPIIT to any e-commerce foreign companies having FDI, operating in Retail Sector.

Department of Consumer Affairs has released the Consumer Protection (e-commerce) Rules, 2020 on 23.07.2020, to clarify liability on e-commerce entities for goods/services provided. Mandatory declarations specifying country of origin, have also been imposed as requirement for e-commerce entities under the Legal Metrology (Packaged Commodities) Rules, 2011 as per O.M. WM-7(7)/2020 dated 03.07.2020 by Department of Consumer Affairs.

This information was given by the Union Minister of Commerce and Industry, Shri Piyush Goyal, in a written reply in the Lok Sabha.

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